chapter 106. After-tax Co

chapter 106. After-tax Co

chapter 106. After-tax Cost of DebtThe Heuser Company’s currently outstanding bonds have a 9% coupon and a 13% yield to maturity. Heuser believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 40%, what is Heuser’s after-tax cost of debt? Round your answer to two decimal places.=%

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